This is an automated archive made by the Lemmit Bot.
The original was posted on /r/newzealand by /u/WellyRuru on 2025-01-24 02:27:06+00:00.
Original Title: In response to David Seymour's comments on the future of Health Care in NZ. - Spolier - David Seymour is not interested in genuinley delivering better healthcare for our country. David Seymour is interested in providing private companies a revenue stream.
TLDR - David is trying to misslead the country into making a really stupid expensive decision on healthcare.
Under the Switzerland healthcare system, you can expect your costs of healthcare to be significantly more money than you currently pay. The only people who benefit from Switzerland's healthcare system are the wealthy, as they pay proportionally less in Switzerland than they do in New Zealand.
Introduction
Today, David Seymour stood on a stage and asked whether New Zealanders should be able to "opt out" of public healthcare and take the tax money they pay into health care over to private healthcare insurance. Along with this question, David claimed this is "how things are done in Europe."
- Firstly, Europe is a continent which is made up of multiple different countries. In fact, there are about 50 different sovereign states within Europe (depending on how you define what Europe is). Across these multiple countries, there are also different healthcare structures.
- Secondly, after a quick search, I can see that there are roughly 5 countries in the whole world where citizens can opt out of public healthcare. 2 of these countries are in Europe… One of these countries is Switzerland.
So no David, that is not how things are "done in Europe". That’s how things are done in 2 countries across the European continent. But David was specific in mentioning Switzerland. In fact, David asked the question, "How are things done in Switzerland?" which is a great question.
How Does the Healthcare System Work in Switzerland?
Switzerland has a mix of public and private healthcare systems where the government regulates the healthcare act while non-profit private providers offer health insurance. Medical insurance in Switzerland is mandatory, and all residents must purchase a health insurance plan after entering the country.
Unlike in other EU countries, health insurance is not connected to employment in Switzerland. All residents are responsible for choosing their insurance provider and taking out proper insurance. Alongside compulsory insurance, they also have the option to purchase supplemental insurance for additional benefits.
To buy health insurance in Switzerland, policyholders must pay their premium and a co-payment amount. Then, after visiting a healthcare provider, their medical costs are reimbursed by their provider between 80% and 100%.
What Does Compulsory Health Insurance Cover in Switzerland?
Compulsory health insurance in Switzerland is comprehensive and covers a myriad of conditions:
- Doctor visits and all medical treatments.
- Hospital treatments.
- Medicines that are included in the list of pharmaceutical specialities (around 2,500 different medicines are covered).
- Preventative medicine.
- Maternity.
- Physiotherapy.
- Complementary medicine such as acupuncture, traditional Chinese medicine (TCM), pharmacotherapy, classical homoeopathy, etc., if it is prescribed and provided by a licensed specialist.
- Spectacles and lenses in cases of serious eye disease.
- Aids and appliances, if they are included in the aids and Appliances list.
Dental is covered only for serious diseases, and basic procedures such as dental fillings and orthodontic treatments are not included.
Cost of Health Insurance in Switzerland
Healthcare is not free in Switzerland; you need to purchase your insurance policy and pay the following costs:
- Insurance premiums.
- Co-payment.
Insurance Premiums in Switzerland
Premiums are monthly payments that differ from canton to canton; you usually pay this in advance, and the average price for premiums in Switzerland goes as follows:
In 2025, the average monthly premium is expected to be CHF 378.70. Which is $735.46 NZD.
Which is equal to $8,825.52 NZD per year. However, this cost will vary depending on things like:
- Age
- Location
- Deductible
- Insurance model
- Supplemental plans.
Insurance companies are also required to offer minimum insurance packages that function as not for profit options for the company.
Co-payment for Health Insurance in Switzerland
Co-payments are a portion of the payment you are in charge of paying. This is when you use the healthcare system. Payment is broken down in the following ways:
- A standard deductible of CHF 300 per year.
- A retention fee of 10% of the remaining amount that is capped at a maximum of CHF 700 per year (CHF 350 for children and teenagers). The retention fee is 20% for medicines for which there is a lesser expensive equivalent.
- A daily hospital fee of CHF 15 for every day spent in the hospital.
For maternity-related medical services, co-payment is not required. For certain services, such as screening for colon cancer and mammography, you’re not required to pay the deductible.
Payment Example:
Let’s assume the total costs of your medical treatment within a year in Switzerland are CHF 4,000 (7772.64 NZD)— you pay the following costs:
- Your deductible of CHF 300 ($582.95 NZD)
- Your retention fee of 10% for the remaining amount of CHF 3,700 ($718.97 NZD)
- Making your total co-payment CHF 670 ($1301.92 NZD)
In the end, your insurance pays the leftover amount of CHF 3,330 (6470.72 NZD)
In this situation, as a citizen, you will have paid:
- Your monthly insurance premium of $8,825.52 per year and $1301.92 in Co-payments for the health care you receive.
In New Zealand, the annual healthcare cost per citizen is roughly $5,688 NZD. The total cost for all citizens is spread out across the tax base of the country. This means that people in New Zealand who earn more pay more of the total portion of health care costs.
It is also worth noting that healthcare through public funding is a not for profit model at all levels. In Switzerland, insurance companies are allowed to operate as a for profit for any coverage above the basic package.
If David wants to improve healthcare outcomes in New Zealand, he does not need to provide private insurance companies with a revenue steam.
So there you have it. That’s how healthcare works in Switzerland and how it compares to New Zealand.
